The utility companies in Pakistan resorts to routine load shedding as a result of persistent energy crises that has become a long term issue. In order to get relief during load shedding, domestic/residential consumers use UPS with battery backup as a means for powering bare minimum load, mainly consisting of light bulbs and ceiling fans. According to an estimation made by Federal Environment Protection Agency, almost 60% of Pakistani domestic consumers rely on UPS with lead-acid battery as electricity backup and an estimated Rs 30 billion is spent by Pakistanis every year on these backup devices that have flooded the markets. The cost of batteries and its maintenance have imposed a financial burden on consumers using UPS. Furthermore, environmental issues and risks of accidents associated with batteries are also of major concern. A survey was conducted to collect information regarding the use of UPS with battery backup, highlighting the issues related to the technical and economic issues and its impact on consumers. In the present work a detailed study on commonly used local manufactured batteries has been conducted and a cost and load model of Battery/UPS system has been developed. Based on the techno-economic study and green energy concept, a novel idea based on pump-storage hydroelectric (PSHE) scheme to eliminate batteries with UPS has been investigated. Amongst the green energy systems, hydro resources seem to be more promising as compared to wind and solar because of their intermittent nature and their availability at sites. PSHE system is a low cost alternate source of electrical energy based on green energy is therefore essential to replace batteries in UPS system. The prototype model was design to exclude batteries from use with UPS which provide consumers with low cost and reliable option. A comparative techno-economic analysis with UPS/battery backup and PSHE/UPS system has been performed. The power supply system, using PSHE to replace the battery can effectively overcome the inherent defects in wind-solar hybrid system. The project was sponsored by Directorate of Science and Technology (DoST) with the plan to commercialize the project as a cost-effective product (manufactured locally) to the consumers during load shedding and for locations such as remote villages hit hard by load shedding.